Operators seek new growth markets as demand slows
Melbourne, Australia (PRWEB) May 04, 2013
Geosynthetics installation involves the installation of synthetic materials as a part of civil engineering and infrastructure projects. These materials are artificially created and their lightweight and durable characteristics allow the materials to be used in a variety of functions, such as for material separation, structure reinforcement, fluid separation, fluid drainage and fluid containment. Most of these functions are used in public and private infrastructure construction and waste and water management across agriculture, mining and other related industries.
Over the past five years, the Geosynthetics Installation industry has faced a moderate level of volatility due to the global financial crisis. The industry has grown at an annualised rate of 2.9% over the five years through 2012-13, to $210.4 million. According to IBISWorld industry analyst Craig Shulman, “factors that have assisted core growth have included government stimulus spending, used to stave off the potential negative effects of the global financial crisis, and a healthy level of resource demand from China”. The Federal Government's stimulus package assisted with the continuation and acceleration of road and rail projects. Resource demand led to a continued rise in resource exploration projects and the emergence of many new sites used for mineral extraction.
“Over the next five years, these factors are expected to wind down, leading players to seek out newer and less developed markets for growth,” says Shulman. “Governments are expected to rein in spending, as federal and state governments seek to become more financially stable and reduce investment in infrastructure construction.” Resource demand from China is forecast to slow over the next five years and weak economic conditions in the United State and Europe are likely to reduce demand for infrastructure in the bulk of the mining sector. Sources of growth for the industry include new coal seam gas and uranium operations in Queensland, both of which will use the industry use to adhere to environmental standards. Other industries requiring cost-effective water and waste management, such as agriculture, are expected to increase demand for industry services.
The Geosynthetics Installation industry’s two largest players are E&A Limited and Geofabrics Australasia Pty Ltd.
For more information, visit IBISWorld’s Geosynthetics Installation report in Australia industry page.
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IBISWorld Industry Report Key Topics
Operators in this industry install geosynthetic materials, which are primarily used in civil engineering and geotechnical applications.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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